Good day, ladies and gentlemen. Welcome to Yduqs videoconference to discuss the results for the third quarter of 2025.

This videoconference is being recorded, and the replay can be accessed on the company's website at www.yduqs.com.br. The presentation is available for download also on the company's website.

Please be advised that all participants will only be watching the videoconference during the presentation, and then we will start the Q&A session when further instructions will be provided. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, projections, and operational and financial goals, they are beliefs and assumptions of Yduqs board of directors based on the current information available to the company.

Those statements may involve risks and uncertainties as they relate to future events and, therefore, depend on circumstances that may or may not occur. Investors, analysts, and journalists should take into account that events related to macroeconomic environment, to the education segment, and other factors may cause the results to differ materially from those expressed in the respective forward-looking statements.

It is important to stress that for a better view of the presentation, we recommend enabling full-screen mode. Present at this videoconference we have Mr.

Rossano Marques, CEO of Yduqs; Mr. Alexandre Aquino, CFO; Mr.

Marcel Desco, Vice President of Sales and Marketing; and Mr. Bernardo Lobão, Director of Investor Relations.

We would now like to give the floor to Mr. Rossano Marques, who will begin the presentation.

Please, Mr. Marques, you may proceed.

Good morning, everyone. Thanks for participating of our Q3 earnings results call.

I'm very proud of our results, right, Aquino? It's a pleasure to be with you today here.

We're opening this new format. I hope you like it.

Our results were very strong, showing the quality, consistency of our results. We have our trademark, we'll continue with that, shown in several ways.

Again, cash generation, the great focus, strong cash generation enabling us to reach our goals. The main one is reduce leverage.

We're very strong in this way. We have intake that is very good, all segments: medicine, IBMEC, and also the three segments, the semi on-campus, on-campus, and distance learning.

We follow this path. Also with margin growth, with quality of results shown in various aspects.

This improvement in margin is benefited by the improvement of bad debt that derives from the better quality of revenue in the past quarters. Let's see the slides, and we'll go into details.

On the highlights, we have, looking business to business, a very strong semi on-campus. Okay.

Over 50% intake, well, excluding nursing, well, we have a very important growth of 33% intake, growing at the various hubs, 98%. This lever continues with the framework.

We have over 100,000 students, very symbolic for the whole of Yduqs. IBMEC is very strong in all lines of intake, not only with our campuses that are maturing, all performing very well, free courses.

There is a gross leverage for IBMEC, it's very consolidated on undergraduate, we can actually have a long way throughout the lifelong learning. EBITDA margin growing very strongly in a sustainable way, showing the strength, the operating leverage, and the ability we have of generating results for a long time in IBMEC.

IDOMED, again, with strong quarter over 60 medicine seats with UniFaveni, we're waiting for CADE's approval to close this. The increase of 30% in FIES ceiling, very important for the intake, especially in this quarter.

The increase in FIES allows us to bring more students, and we capture higher revenue from the students. EBITDA margin of IDOMED is very high at 52%.

Intake as a whole growing by 14% vis-a-vis what happened in the results of second quarter, with very positive outlook for this quarter and getting to what I think is the strongest brand of this quarter, proving our cash generation capability. You see the evolution of cash generation of the company reaching its top, over R$600 million, operating above our guidance.

This generates, with the previous actions, yield above 18% of our share price, showing the strength of the business ability of generating cash. Again, on the quality of revenue generation, this has been attained at a time which we increase the quality of cash generation.

From the first quarter, we had a provision for the non-engaged students. This reduces revenue with no accounting impact or cash or final outcome.

This is a complete cycle of dropouts, etc. You see the results of bad debt dropping, you have positive results in the fourth quarter, first quarter.

This is being, actually, influencing several others and smaller penetration of DIS, showing the high quality of intake we have. Another quarter in which we have a DIS penetration below previous years.

We believe that as an intake tool, we're showing more transparency to students and have a balance. Students that use this, they use it intelligently, but overall, this adhesion is dropping, improving the quality of revenue.

How do we see that? Reducing bad debt in the third quarter, and this will continue to happen in the future quarters.

Our way of recognizing revenue and using cash in private funding, we see the results here dropping of 8 days of DSO, the quality of our results, once again, making us to be very proud. On the slide, we see intake and student base, as we talked about that, 14% as a business as a whole.

Of course, this is a great lever of the company. We continue with that.

An important highlight is on-campus with a growth on student base. We saw intake in on-campus from FIES that was dropping with negative trend during the pandemic.

We saw the curve stabilizing. We show what's happening.

We have a growth in intake on-campus, and digital also showing a growth, a quarter having a trade-up that is big to semi on-campus and showing an increase in intake. When we look to the right in the student base growth, important point, we talked about that, on-campus stabilizing intake, it's growing, and you see that stabilizing, and it is clear the trade-up from digital to semi.

Semi, to us, the ticket is almost twice as much as digital. It's a tool of growth for us, and it has been made official by the legal framework.

There was a gray zone in the legal framework. In the new framework, it's a way of actually delivering teaching officially, making it clear to students.

Offers are more comparable and should strengthen our growth in this modality. Here, again, talking about the quality of revenue, we see two charts.

On the left, drop of adhesion to DIS, the percentage actually dropping in the total revenue. This will actually lead to a lower bad debt.

You see the cycle and then the negative impact to revenue. We saw that in the first semester.

We'll see that along the year, and we always say that, it's a cycle of 15 months, this. Then you start seeing that a relevant drop of bad debt associated to that.

On the right, we see our total net revenue. We see we were conservative, provisioning 5% of engaged students, right?

It will translate into better bad debt, this impact to revenue. We had a revenue growth, apples to apples, 5% year-over-year, and when we put this provision in, it would drop to 3%.

The correct way of comparing them would be 5%. Another factor that will lead to a reduction in bad debt, showing the quality in intake, results are here, and cash generation.

Over this process, we improved the percentage of cash conversion. Now we move on to the on-campus.

We see the strength Yduqs has in the on-campus market in Brazil, present in all states practically of the federation, all capitals, very strong with very known and renowned brands where we operate. We see on-campus had this trend of a turn since the pandemic.

Since the drop of FIES, the pandemic, we saw the curve turning, and we have a demonstration of this curve being proven, the growth of net revenue in the quarter driven by intake and ticket. This is very good.

You see the model happening all over. Let's start on the right.

Renewal 31%, and you see difference between 0.5 versus previous year. This is very important.

When we talk about both areas, on-campus, semi on-campus, when we have semi on-campus, our renewal is a bit below. It's a newer course with more presence of freshmen.

It impacts, but we have a very high level of renewal in this business, showing the quality of product delivers and resilience of business. With all this, adjusted EBITDA, similar margin, with first quarter, we're going to suffer part because of there is revenue recognition, and we see now, and we reap those benefits, especially through lower bad debt, the results we have of the efficient policies we've been implementing over the year yielding results.

We increase our ability to generate value, and EBITDA actually stabilizing. We see very similar moves to last years, positive trend on the on-campus.

When we look at digital learning, the highlight is margin book growth, that is important, reducing in the first semester. We pointed that this was very much related to the revenue recognition model used, and we see digital so 2.5 percentage points regarding Q3, especially for what we already been, lower bad debt and more efficiency.

When we look at revenue, the whole business is actually reaping the benefits of upselling between distance learning, semi on-campus, higher ticket with great growth power, and its digital actually loses space to the benefit of a business with greater margin. It's very stable in terms of student base with small fluctuation on undergraduate, but very much influenced by the upsell.

Ticket is stable, and you'll certainly have questions after the call on the ticket development. We had more pressure on ticket because of the courses actually with some restrictions due to the framework.

They had certain restrictions on the intake because of the framework and nursing on the semi on-campus, those courses, since was the last intake in those modalities, we had the whole market influenced. This certainly results in a positive way of our LTM because we had an increase in intake.

We don't see that happening in the fourth quarter. It's ticket overall, taking those specific courses that had certain pressure on the last intake, ticket is behaving in a very rational way.

From the fourth quarter and next year, we're going to see that. This will be stable year-over-year, even in a business with a pressure on ticket in this business.

Looking at IDOMED, again, only good news, growth in revenue above to 11% with gross 10% in the quarter. We have maturing the undergraduate base.

This quarter, again, a quarter of good news to highlight an item that is great opportunity. We see undergraduate being a great base of revenue of IDOMED, and this is medical school.

When you see that for undergraduate, the whole life, and this is small business to us, and this has penetration very below our fair share of the business. This is a great opportunity of Yduqs for the strategy that we have for next year that has started to be implemented.

This is very relevant, the whole life in medical. This has great potential.

We saw the growth of seats growing a lot in the past 2 years. This will generate a higher number of doctors graduated, and this will influence residents.

We have more search of specializations in private education. We're very well-prepared to tap into this opportunity.

This obviously is a chance that has to be tapped into by IDOMED, and we're prepared to tap into that in the prospect of growth. When we look to the right, we see highlight of 55% of margin, stable year-over-year.

Even with the maturing of the base, when we get to other years, cost structure is higher, this would tend to put pressure on margin, but the growth, operating leverage of the business, and the ways of efficiency that we find in the structure as a whole help us keep margins that are very high, certainly benchmarks for this market. The average undergraduate ticket growing by 4%, coming from the Mais Médicos in the states.

Brazil, we know Rio de Janeiro, we have the highest ticket of our business, and it is a business that is stable. You don't have base maturation with the whole base growing in places that you have high and lower tickets.

This should put a pressure on the ticket, but we see again the ticket reasonably stable, growing year-over-year. Even with the factor of negative ticket, course by course, we follow with readjustments above others in medical schools.

Going to IBMEC, everything is so positive at IBMEC. We only have a source of good news to us with revenue growth, 23% year-over-year.

Same thing when you look at the past 9 months. This growth coming from various avenues.

The most important is the maturing of the campuses, Faria Lima and Brasília, well, regular intake. We see major growth in the business, but our business having a growth in intake, very strong for IBMEC in all the undergraduate areas.

When you look at graduate studies, we mentioned IDOMED. IDOMED, we had great opportunities.

It's small in terms of revenue coming from other courses that are not undergraduate. At IBMEC, it's different.

We have relevant participation at graduate, but great potential for growth. Growth is strong in this new avenue.

Free courses, graduate studies, margin for that, and capturing lots of things. As of next year, we have a new campus in Rio de Janeiro.

We're going to move from downtown to Botafogo. Great growth in the city.

IBMEC in the south zone, that will actually release things. Very relevant brand for the city with an additional campus.

That will be a flagship for us in Botafogo. For margins, only joys, well, 6 percentage points year-over-year, and we see a sustainable margin.

Not only this operating leverage that for the campuses, but not only the new, we talked about the older ones, all the efficiency process and capturing better tickets of IBMEC. Growing, average ticket growing by 7% again.

Great results for IBMEC, very high, operating at 90% at renewal, but very high levels, and again, we're very proud to the product that we deliver and the satisfaction students have. IBMEC presence and quality is huge, and we're actually having super qualified students coming from that.

Now let's talk about our revenue in a consolidated way. We've grown in comparable ways, 4% compared to the previous years.

This could be 6% if we had the same adhesion to DIS if we had in this similar quarter last year. Again, IBMEC and IDOMED grew very strongly: IDOMED 10%, IBMEC 23%.

When we look at in retrospect the past 4 years, the growth is even more important. The two brands combined moved from 19% of total share of our revenue to 31%.

The great advantage is that looking ahead, we have a lot to grow in both brands, both in undergraduate, we have several points that are still maturing, several campuses, and we have great growth opportunity in graduate studies, and we have the expansion of the portfolio. Has been a very strong brand in the business, quite strong in law and also technologies.

Speaking our costs and expenses, as we mentioned when we closed the second quarter, we must have margin gains in the second semester this year when we compared to the results we had second semester last year. This margin gain is showing already, the best improvement we had actually in bad debt.

Great margin improvement, the gain came, 3.2%. We had the percentage of renewals very linked to the more engagement of our students and better conditions and NPS, etc.

Another important part of that, of reducing bad debt, is less participation of the DIS revenue, a drop in its share. This less share of DIS revenue helps us reduce bad debt, and not only this quarter, but the future ones.

We have this positive variation of our bad debt was we had sales of our receivable. We sold 20% of our portfolio.

That was 100% provision. Looking at the other lines, we see at the increase of G&A happened to more variable costs because of the intake we had this year.

Last, speaking of costs, we basically had two effects that represent that. The first is 1/3 of this variation was increase of, actually, collection of the hubs for better quality of revenue and intake.

Actually, the collection is what links to the transfer we make to our hubs. With higher collection, we have lower bad debt, but we have greater transfer.

The other 2/3 of this variation are related to lower dilution of fixed costs to two factors: one, provision of engaged students, and the other is less addition to DIS. The increase we had in our margin allows us to lever our EBITDA results.

Comparably, we grew 9% compared to the third quarter last year, even with lower addition to DIS. We see again that our premium brands shining.

We had a growth compared to the past 4 years, 26% of total results to 43% of our EBITDA in our quarter. Those two brands are those that grow the most in revenue.

We have EBITDA margin of 50%, and looking ahead, they'll help us navigate those moments of restlessness in terms of regulations. Even with a negative impact of R$64 million with the increase of Selic in our results, well, we had this growth in the first 9 months of the year compared to previous years.

Most important, it was the growth in earnings per share. We grew 23% regard equivalent period closed in the third quarter '24.

We are very much levered by the excellent buyback program at the end of '24, early '25, showing the great value given to shares with the buyback. As Rossano mentioned previously, cash generation for shareholders is an excellent result for this year as it was in previous quarter.

We have R$559 million of our FCFE, which is above our guidance. When we look at 12 months closed in third quarter '25, we get to R$610 million in FCFE, which is a great growth compared to the previous period.

We have the yield of 18%. This was very much supported by the drop in the average term of receivables of 8 days.

That happens this quarter is happening recurrently in the past quarters as to do the way we receive private funding and also collection, and this is supported by measures that have a negative short-term impact for EBITDA, revenue, or net profit, but do not generate cash. That's why we have the improvement in our days of sales outstanding of the non-engaged, a lower addition to DIS.

Very good, Aquino. Why it's important to talk about cash generation this year?

As we said, we've had very solid results even with these policies of recognizing revenue that are more conservative. Immediately have 5% from one to the other, one year to the other, without changing a business.

If you have the performance very strong, and you see that in cash because we said this move that we made of provision would not impact cash, and this is shown. This is why it's an important year.

Even this year, when we're making those adjustments to increasingly improve the quality of our revenue, of our results overall, cash is where it is clear that we're on the right track. Talk about debt?

We closed the previous quarter with a cash position, very strong one, R$1.054 billion, R$56 million, we had a spread of a bit over R$1 million, very low, smaller of the educational industry. We took very strong cash generation to reduce our leverage, improving from 1.7 times at the end of second to 1.5 at the end of this third quarter.

If we didn't have the buyback and not pay dividend, we would be close to 1.3. We follow strongly our goal to get one-time net debt-EBITDA.

This is our priority number one for capital allocation. That's where we're moving towards.

When we said the Yduqs Day last year, we talked about our capital allocation. We talk about opportunistically, and we took a great opportunity fourth quarter last year, first quarter this year, with a buyback generating great value to shareholders.

Next slide, we can see the overall. We stop to look at a snapshot of what's happening, very important for public companies.

We cannot lose track of this broad view of companies. We should see the historical evolution of the business.

When we look at net revenue, it's hard to say that this is high volatility. You can see a CAGR, constant 7% growth in revenue.

When you look below, very stable margin. It's good to remember that in 2019 from 2019 to 2025, we had the pandemic in the middle, we had a growth in revenue, high EBITDA margin, and paying dividends.

A company that since it was founded, it pays dividends every year, halfway through with very successful buyback programs with relevant growth in cash generation to shareholders. We see 2021 mid-pandemic, burning cash, negative cash generation, and we have R$600 million cash generated, a yield of 18% on the share price.

Looking at long term, it's hard to classify this company or the industry as a whole, but we are standing out here, very constant, very quality results, showing every semester, every year, the ability of generating value to the business. On our slide on the regulatory framework, the market is talking a lot about that.

It's the fear, and it's a burning topic that we have with analysts. We heard the calls of our colleagues.

We felt it would be important to bring an update on our view that we talked about the market. Let's reinforce our view.

We see the framework with several opportunities. It's a new regulation that it will strengthen a lot of players that can deliver quality.

Basically, it's a restriction process of digital offerings. It seeks greater on-campus reach.

We have the ability of being a winning player in this new model. It brings two restrictions.

Looking at the restriction of revenue because it restricts certain courses in some modalities, so, as example, nursing cannot be offered on the hubs in a semi on-campus. It can only be on-campus.

We remove the offering of nursing at the hubs. We have an impact to the revenue over the year.

We're going to tap into that. We'll talk about opportunities, and we'll actually tap into those opportunities.

Other courses is health, engineering, they cannot be offered on distance learning. They can only be offered on semi on-campus.

We have a greater restriction of the students, several markets that can have an impact to revenue. We see the impact in 2026 around 1% of our revenue, but the impact is about of the 1%, of 1% of total revenue company.

We see spending, we have to offer more, this increases cost. This will only happen in 2027.

We'll have adaptations in '27, but the growth will be 0.7%, of course, in 2027 in costs. We have a long time to work on that until then to see how the tickets offset that, but the direct impact in costs is a 0.7%, especially because you have more synchronicity, more on-campus, and you have some structures that have to be adapted.

Okay. This will impact our NOR.

When you see the positive side, we see great opportunities for the players of good quality, many of them. Competitiveness, this framework will actually strengthen those that have more ability or capability on on-campus.

We believe we'll be winners in this environment. It will be more stable competitive environment, reducing offerings and players that will privilege those that are better positioned.

We believe Yduqs will be a great winner. Second point is semi on-campus was a modality that was actually fit into digital, was not an independent one.

Now the ministry officializes semi on-campus modality. It was actually growing the most within Yduqs.

We have great opportunity of growing there, and it is clear for students and what exactly it is. We believe we have the product with greater growth potential.

We'll be very well-positioned to capture the whole potential. Lastly, capillarity we have on on-campus reach.

Spread throughout, almost, say, all states of Brazil, 90 units across the country that will bring advantages to Yduqs. With the reduction of offering that we have in the other two modalities, Yduqs, once again, will be a great model or winner in this model.

Let's move into technology. Okay.

I'll be right back. AI is a great lever of growth for our company.

I called Marcel to help me with that. Tell us, are we getting lots of results there?

We've been investing in AI for a long time, and there's a lot happening. People are suffering to explain results and show gains.

At Yduqs, we have certain cases that are well-consolidated where we can count and tell more to the market. I selected four cases.

All the AI efforts follows the three pillars: improving quality of teaching, improve operating efficiency, see our students graduating in a more complete way for a labor market that is changing every day. Of these four cases, taking the first, we had a great evolution in digital marketing when we talk about studying the process, the way they arrive, and how we can adapt communication to improve conversion and also the way we approach prospects.

This is something we've been doing with tools that allow us to have a production in scale of creatives to talk based on the history of the students during the selection of the course, and then we can have a remarketing that can be even stronger. We can do that with generative AI or GenAI tools, and this gives us scale that would be impossible to do with human and with conversion that are increasingly higher.

This is 2.5 times conversion rates that we had in terms of personalization. We've been working a lot in developing internal skills to scale new products.

This was born with cells, for example, working with no-code, low-code tools: Lovable, GitHub Copilot, and ChatGPT. We've been working hard on that because we can have squads that are increasingly smaller and launch a product at record times.

We launched a tutoring tool recently in a term that is below 2 months with a much higher service level compared to a tool that we bought from third party. Going to the line of quality of teaching, operating efficiency, we have our personal assistant.

Tars are working in a multi-agent model, and we're very advanced in the part of service of red tape, 1,600,000 interactions of students, very high resolution rate, and very high satisfaction rate to students. This is evolving to help students in the part of education and tutorials and more academic answers.

We are in this evolutionary process, and it's actually linked to other service channels that our students use today. To close, as I mentioned, labor market, training our students, we have our matchmaking that uses all the tools to do a match between vacancies and the courses they have been attending, recommending certain vacancies to students.

We have over 1 million students registered in this career portal, 130,000 openings, and we have a very high satisfaction rate and, actually, accesses very high to this portal. It's great joy to see this because Yduqs had technology as its basis of everything we do.

Technology is a very strong basis of everything that we did in technology that is on a hype today. You see efficient results that are efficient and effective to our students.

We talked about several things highlighting the ability we have of delivering a new digital product in 2 months. I know this is just an example.

We're not talking about everything we do. This is incredible.

Service format and new platforms of customer service, platforms that deliver efficiency, you can resolve 71% of resolutions without having to overflow the volume and 70% satisfaction, using technology not only to deliver efficiency, but with higher quality and more satisfaction to students. We feel proud to look at these results.

Sure. To do all of it with so much cost responsibility, people talk a lot about that as to hide those tools if they're not well-worked, they can be not efficient.

Being able to do that basically in all our student journeys. Thank you, Marcel.

Thank you for taking part of our call. Moving on to the next slide.

Before I call Lobão, let's talk about ESG. I'd like to highlight this award that we got of the best company for people management.

We have Camila, our VP of People Management. We know sustainable results are only attained with a very engaged team, very highly qualified as Yduqs with a very high level of engagement.

We're very proud to see this award that we won, and thank the whole Yduqs team for this impressive result. I'd like to call Lobão.

Let's talk about this vision that we have till the year-end. Great challenge to us.

The guidance we've attained is we're very well-positioned, and the guidance of cash flow, 93% of the guidance we gave in the past 9 months, moving very well, as is seen by the conservative view of revenue. We have certain glitches or impact to the accounting results.

We saw the fruits that we're going to reap and how this was going to lead us to the earnings per share. Tell us about our view to the end of year of the four levers and the results of second quarter.

The first was intake and retention that we said that a strong cycle of intake that we envisaged for the second quarter, more retention, students would lead to stronger revenue. We have delivered that in this quarter.

This is something that we started with, and fourth quarter is strong, is going to be stronger because this quarter was impacted by a lower addition to DIS that impacts the quarters that are strong in terms of intake. For the fourth quarter, we see the growth even stronger of revenue, and this lever working, the lever has been checked third quarter, and we see even more positive for the fourth.

What about bad debt? We're capturing this benefit.

Bad debt was the great highlight of the quarter with strong reduction of bad debt, as Aquino has explained the reasons. The good renewal rate and also intake and impact of the reduction of DIS revenue penetration, and for the fourth quarter, we should an additional contribution to the provision of non-engaged students that has an effect in the fourth quarter and even stronger next year.

This is a lever that has been working very well in the third quarter, and another check. What about contingencies?

Contingencies, we had mentioned that tends to be reduced vis-a-vis the level of second half of last year, and we have delivered one well below compared to previous year, and we have a reduction for the fourth quarter G&A that we haven't delivered in line we expect. What is the view for fourth quarter is very optimistic for G&A.

We saw the corporate restructuring process, we see full by the fourth quarter. We're very optimistic of being able to deliver the G&A.

That's an important lever that will work first to deliver our earnings per share that we have delivered this year, positive outlook. We have the guidance of earnings per share that we gave in early on our final slide, final considerations, remarks, very happy with the results we've been delivering.

You're seeing the consistency of the company over the past years, and this is important. Our results are cleaner, more predictable, easier for everyone to understand with greater quality.

This is shown throughout the way. The most obvious thing, we have lower revenue year-over-year comparably, well, considering non-engaged students.

This does not impact cash. This is just an accounting view, different from in a year to year, but more quality in the quality of revenue when we see reduction to DIS addition brings better quality of the predictability of revenue because it actually brings better result and a margin that is going to improve as you reduce things and improve your bad debt.

The other highlights here of the quarter, very strong intake, 14% year-over-year. We see this risk view on the industry, sometimes stronger than positive things.

It's very good to have very positive third quarter. We see we're very well-prepared for the regulatory framework.

Any regulatory framework brings surprises, we know that we're going to be winners in this new ecosystem of the new framework. We have adjusted EBITDA improving of all, you see IBMEC, expanding margin, IDOMED keeping very high margins.

We have positive margins all over, this company keeps growing, generating cash, and expanding margin, very healthy business, following our path of reducing leverage, 0.52 times. This was 1.52 times.

This was to be 1.3 if we hadn't had the buyback and distribution of dividends. We'll keep that on our radar.

Our priority of capital allocation is deleveraging. We have FCFE and net income.

We are operating above the guidance, and the nine first months of 2025, we generated 93% of the top of the guidance for this year. Again, a quarter of high quality, making us very proud.

Thank you very much for your participation. We're going to close our conference.

We're going to start Q&A session. We'll be happy to answer your questions.

Thank you. We will now start the Q&A session for investors and analysts.

If you wish to ask a question, please press the raise hand button. If your question is answered, you can leave the queue by clicking on the same button.

Wait until we collect the questions. Our first question is from Samuel Alves from BTG Pactual.

Samuel, your microphone is open. Good morning, Rossano, Rossano Marques.

I have two questions on our side. First, I'd like to talk about this cash generation trend.

You mentioned guidance be revised for this year. You mentioned the LTM dynamics, FCFE.

What do you imagine for next year? Can you keep the pace?

Can it be a bit higher? I know you're starting to discuss budget.

If you can give me some flavor on cash generation, that would be interesting. Second question is a bit about the trend of non-recurring.

You had some adjustments in the structure that impacted the third quarter. Do you have any visibility of structured adjustments for Q4 in administrative and faculty?

Will it be a cleaner quarter? If you can shed some light on that, it would be of great help.

Thank you. Thank you, Samuel.

Good questions. For cash generation, our view for next year is at least stable compared to this year.

Going to work to have stronger cash than this year. This year, we had this turn for the receivable, private fund financing, the same quarter of the payment of the entrance of students.

That helped a lot this year. Great part of this result is recurrent.

Part of it will be stronger this year, especially previous payments that are keep on being made this year than next year. It's difference that is small that will be offset by the growth that we estimate of EBITDA, improvement of other results.

We'll actually work on the same level as of cash generation this year and try to improve even more. Good point of non-recurring.

All the items that we have been allocating as non-recurring, restructuring of campuses, reduction of costs in personnel has been reducing quarter after quarter, and it continues in Q3. We have a corporate restructuring.

We know there has been a change in the executive management of the company. We had a broader corporate restructuring.

All the costs of restructuring was allocated in Q3. Nothing is left for Q4.

It's cleaner, and we see Q4 recurring even lower than previous year, following the trend of being smaller than previous year. This should be one of the positive ones compared Q3 to Q4.

Good questions. Thank you.

Our next question is from Flavia Yoshida from Bank of America. Your mic is open.

Good morning, everyone. Thanks for the time.

I have two questions. The first is on the slide that shows on the new regulatory framework, quite interesting one.

I'd like to understand, Rossano, well, you've shown this impact of 1% on revenue. I'd like to better understand where this impact comes from, if it's a demand reduction.

I'd like to understand the assumptions, how you got to this number, and also the part of expenses. You've shown the impact of 0.7.

I'd like to understand the assumptions and how much we should expect for 2026. How much would that be seen in 2026?

My second question is regarding economics of Pravaler, of anticipating Pravaler. As the base matures, this has a receivables that is a longer cycle.

Are you concerned about the structure of your cash for the company from now on? Thank you.

Thank you, Yoshida. Good questions.

I'll start with the second, and I'm going to share the first with Rodolfo. As I mentioned to Samuel, we start by having a cash conversion that is constant in structure for next years, and it will be better.

It's still benefited, and we'll have a reduction over time. We're only anticipating the new contracts.

New contracts, they start having immediate revenue. You're not creating long-term expenses, you receive it over the years.

In 2025, it's still higher. '26, it reduces, and even smaller, and this reduces over time.

The proportion of the benefit that we had that is not recurring that is stronger in '25 is small, right? Easily, the normal growth of EBITDA, growing that, it's above this specific benefit.

We're very optimistic with 2026 cash. It will be a highlight for the company.

On the framework, it's been a hot topic in most calls and of our colleagues, etc. We've been answering a lot to market, we made a slide to show things clearly on, actually, NOR.

This 1% is the reduction of offers, you stop offering a specific course, which is nursing, can only be on-campus, and you lose the offer at all units, though, just the same way. Other courses offered in the distance learning can only be semi on-campus, you'll have a limitation of offers.

This is an estimate that this limitation of offers that will cause on our NOR. We estimate a slight change of choice of courses of upselling choices to certain modalities.

We know it's difficult, there is an impact to NOR to 2025. We see opportunities on the right-hand side of the slide.

It will be more controlled competitive environment. We have a semi on-campus product that is very strong that will be super valued under the new framework.

We have on-campus reach throughout Brazil. Practically in all states of Brazil, we'll be prepared to have this migration to on-campus that we start seeing.

We're very positive regarding this. As to cost increase for 2027, we have that we have this time to get there.

That's basically from various aspects: so on-campus and adaptation to the units. What will be partial in 2026 is that new courses, changes of hubs or units that we're going to make, those new courses or new units have to be adapted.

Part of the 2027 cost will be realized in '26, a small percentage, less than half of this impact happening in 2026, but again, we think that we'll have several opportunities with the new framework, and we'll be very well-prepared for that. Rodolfo, would you like to add anything?

Good morning. Good morning to all.

Good morning, Flavia. Thank you for your question.

I believe Rossano covered this quite well. The impacts on this line points from 0 to 0.3 to 2026, and as Rossano put it quite well, we're very well-structured despite the challenges of the framework of on-campus, synchronicity.

The challenge that naturally over this transition period is our dedicating time and energy. We have a work team that has been for over a year looking at this, and we're very confident that the process will be very smooth over this period, and the impact will be relatively small.

Thank you, Rodolfo. Just to close on your point, Flavia, we are increasingly confident on the ascertained structuring.

Having presidency of on-campus, and Rodolfo focused on partnering operations, looking at the whole operation of 2,500 units we have in Brazil, we have several opportunities to be open. We have a great growth lever.

You see the growth in all the semi on-campus units, and this reinforces our good positioning in this new model. Thank you, Flavia.

Thank you. Next question from Livia Mizobata from JPMorgan.

Hi, everyone. Good morning.

Thank you for taking my question. First is more for medicine.

I know it's early to talk. I'd like you to comment on how you design the entrance examination for 2026 if you see any change in competition intensity for 2026.

A point I'd like you to help us think is how can we balance a greater seat offer and an increase in the FIES ceiling when we think about 2026? The second point I'd like to address is strategic plan for IDOMED for graduate studies.

Considering the comments you made, what do you see as the potential of the segment? What is the target population to get the fair share of the market?

What do you have as outlook for 2026 in the mid, long term? Thank you.

Thank you, Livia. Excellent questions.

Medicine is very important business to us, and increasingly more, quarter after quarter shows the strength of positioning of the IDOMED brand throughout Brazil. I'll answer it more superficial, and I'll ask others to go deeper.

Our positioning, well, we have a sampling in the intake of second half. For 2026, it's hard to say.

What we had of 26.1 makes us feel excited. It's a challenge, a relevant number of seats that was offered.

This impacts the competitive environment that we bet on our positioning. This has been proven.

Silvio has been talking about the impact that regional changes from region to region depending on the volume of seat offerings that we have. We know that initially it's stronger, and the positioning is reinforced over time.

We see some marketplace that have been negatively impacted by 25.1. When we see the intake 26.1 is recovering, the quality positioning is proven very quickly.

The courses have a long way to run. We have decades of building IDOMED that have a lot of value.

Sometimes, students with a new offer, they are sensitized with some offers that are more competitive. They may initially test the new offerings, and again, we are sure that the quality is vastly proven, especially in medicine, the on-campus quality is proven very quickly.

We're sure that we'll be very well-positioned in this market. I'll let Silvio answer later for the FIES.

Increase of ceiling is very good news. It brings more students that will be able to pay our tuition fees with a higher ceiling.

The students that we had with social FIES that are not able to pay the additional, they are covered by FIES. This has helped a lot in the intake of 25.2.

This is a trend. You see that the intake of 1.2, students usually start the first half.

So 25.2 FIES is a cycle that is later. It's a good period for us to leverage FIES, and we've done that this time, and it's a trend that should continue.

Lifelong is one of the strategies of the company. We have several opportunities for growth, a company that usually talks about things after having made and done them.

We see several growth avenues that we have for the company. Lifelong medicine is one of them.

We have free penetration regarding graduate, fair share should be natural. We have a very relevant market to be captured, and we are positioning ourselves very well to be a great winner in this market.

Let me allow Silvio to add to that. What else can we say to that?

Thank you, Livia. Thank you for the question.

I'll start with the Medcel, and then I'll go back to the entrance examination. Graduate studies in medicine should be structured.

It's about R$5 billion, R$6 billion, but it's actually underpenetrated, those that grow the most. Graduate to R$200 million, R$300 million at most.

Actually, it's something that we must build very high-quality products so that the graduate students can actually take private vis-a-vis a resident seat that has increasingly fewer seats and more people that are graduated. The fair share part, well, we understand that we must build this market to be able to move forward, increasing our representativeness in this segment, we and the industry as a whole.

We have a great blue ocean ahead, and there's a bubble that has to be burst. People are going to seek residency, which is, well, 60 hours a week of education that is quite intense, very low compensation.

You've asked about strategies. We build a product of very high quality, professionalizing professionals.

We see the more specialized doctors are, the better is their income. We believe very much in building a robust portfolio.

Half percent of our revenue comes from graduate studies, Rossano has shown that, and we understand that market as a whole is benefited. We're very well-structured.

We set up a structure that is more robust, expanding our portfolio with new partnerships and agreements with the goal of being stronger in the segment of graduate studies, and with our strategic plan with a very fast growth, increasing by threefold year-over-year in this segment. For graduate studies, this is it.

We wouldn't have here a number to share of the fair share, but it's very underpenetrated to future growth, not only for us, but all the others that are actually in this industry that provide quality products can be benefited by this. We know that since we are actually spread throughout Brazil with good agreements, we are well-positioned to be able to capture more of this market than competitors.

As to the entrance examination of vestibular, we see the impact of injection of new seats is very regionalized. It's not linear.

Each one of the marketplaces has gone through a different behavior. Not necessarily where we have more seats is where we're going to have more pressure.

Some places, the quality and the knowledge, I speak of Teresina, market that is very impacted by injection of new courses, we have a course of medical schools, UniFaveni, well, we have exceptional seat or opening students. We have to see the quality of offering that you have to keep to ensuring good intake.

Some marketplaces where we notice higher impact, the recent initiatives of ours have been yielding good results. Some marketplaces, we saw that were more challenging, they're kind of turning, not only in the second half of '25, but for '26, they will have a lot of search.

Another point you brought up, and Rossano brought up, some candidates go to newer programs that lower ticket, and we see a great move of transfers, reopenings, showing that lower ticket of the tuition does not deliver what the premium audience expects, we are able to resume this competitiveness. FIES has been helping a lot.

The higher FIES ceiling is very important that you've mentioned. Upperclassmen about R$12,000, R$13,000, this FIES ceiling going to R$13,000 is very close to the average ticket of medical courses, better positioned.

That brings important recovery of what could be the loss when you have a mix, a higher number in FIES. Just to wrap up, we have 2,600 seats a year.

We have more for the second half, less for the second half, trying to get higher revenue, and we do the balance in second half. As Rossano said, we're more aggressive in FIES to be able to bring and to capture as much result as the year in this balance in the mix between those that pay our tuition fees and those that use FIES.

It has still an important lever because the FIES students have a better renewal rate. The retention is higher.

It has the pros to have a FIES base that is high, especially marketplaces that need most, and those that don't need most, we're less aggressive in FIES. We filled the seats almost totally with students that pay their own tuition fees.

Excellent. Thank you very much.

Very clear. I just like to follow up on the IDOMED part.

Considering the investment in quality, robust portfolio, should this have some impact on CapEx and margin? Can you help us think about structuring elements that would make the margin of graduate seems to be different from undergrad?

Good question again, Livia. Not for CapEx.

We have super differentiated structures, well-positioned. We had a bit of leverage in M&A.

We see the VM of the company as a whole more or less stable regarding this year. It shouldn't be anything that is relevant.

For Medcel, we have a tighter margin than undergrad. The company as a whole will have a dilution, and we have additional revenue, it will be little relevant in terms of tightening margin.

We have more generation, the general margin for graduate can be a bit lower. Depends on the portfolio.

It depends actually a bit more of M&A and it depends on the type of dynamics. Some of them have more intensive dynamics, others less.

You produce new content, and we have a cost curve that is tighter, but very little significance for next year, especially. Thanks for your question.

Thank you. Excellent.

Next question, Eduardo Resende from UBS. Please, Mr.

Eduardo, your microphone is open. Good morning, everyone.

Thanks for the time. Two questions on my side.

First, I'd like to have some flavor on the dropout rate, what you expect for 2026. We should actually an increase in dropout with the regulatory framework.

Students won't be able to enter again this course in the same modality, whilst this program now of tax exemption for families that earn up to R$5,000 could be positive to control dropout. Any color that it can give us in terms of dropout would help us, and also the impact of income tax exemption regarding dropout.

Where would you have more impact? It would be dropout, intake?

I'd like to have your views on those things. Eduardo, thank you.

Interesting question. Dropout dynamics, you're right.

Every time you have freshmen, well, dropout rates are higher than upperclass students. If there is courses, well, they are restricted.

If they drop out, they are not able to join again. I believe we should have higher retention than normal, potentially should be good news.

Regarding dropout, we have been improving year-over-year, even higher growth in graduate and semi than, well, this has been improving. I believe that potentially it's good news.

I hadn't even thought about that. You bring up a good point.

Should be more positive than normal for freshmen because of this restriction. Great point.

On the 5,000 tax exemption, we have to make certain estimates internally on your point where this should impact three things: more income available, this should facilitate intake, it should reduce delinquency, and also improve renewal. We should have positive impact on the three points.

We see very good signs for intake for 2026. We haven't talked about this, but we had great growth on the interest now of ENEM, much stronger.

I think it was 11% above the ENEM examination, those are positive aspects that may have a benefit in this more positive outlook for the year. A good point, we have estimates here, but certainly we have to wait until things happen, but they seem to be positive points for next year.

Very clear, Rossano. Thank you.

Our next question is from Lucca Marquezini from Itaú BBA. Your microphone is open.

Good morning, everyone. Thank you for taking our questions.

Two on our side. The first would be distance learning ticket.

We saw a drop impacted by the exemption program for non-engaged students with this and lower penetration of DIS. If we exclude those two impacts, if you could comment on the competitive dynamics that you've seen in this intake cycle.

Second point on semi on-campus, we saw this strong growth over the 9 months of 2025, impacted, of course, by, the transition, the regulatory framework 20 for 2026, thinking about a more sustainable rate recurring in the segment, what do you expect in representativeness for semi on-campus next year? Those are my two questions.

Thank you. Thank you, Lucca.

I'll open here, and then I'll ask Marcel to help. Starting with the semi for next year, you're right.

It's been a strong lever in 2025. Third quarter was even further driven by the last chances of nursing.

We showed in the presentation since the number with or without the intake in nursing that was most influenced. In the third quarter, we grew above 30% in semi.

You remember that we still have a long way for semi on-campus and the on-campus, getting to our better levels. We're started a bit later.

That's possible. We have a catch-up phase happening, great room for growth of offering of semi and the units.

This adaptation will enable a greater offer and new framework officializing semi on-campus as a modality that is isolated and well-defined facilitates the comparability for students. They know what they can expect on a semi on-campus.

They demand more quality, more on-campus, and we can totally offer that. That should be another very strong year for semi on-campus.

I'll let Marcel to complement and talk about this ticket dynamics that we've seen in the third quarter. Thank you, Rossano.

Thank you, Lucca. On the ticket of distance learning, we had this rush in Q3 because of this last chance because of the regulatory framework.

What our interpretation here is that it was more acute thing, very much moving the whole market that everybody followed, but it shouldn't be something that will remain. Everybody has gone through this stage.

After it was published, we see everybody adjusting for levels closer. I'm talking about 100% distance learning of what we had before that and semi on-campus, apparently everybody following this line of quantified that is similar to what we expected of semi on-campus with the deliveries the way they are.

I believe that it seems that is something that has been very specific on this opportunity seen by the market. Just to add, Rossano, on semi on-campus, a great point here is that we're maturing very much our offering with the regulatory framework being more transparent as how the offering will be.

The product, we are very optimistic regarding the portfolio that we have set for the fourth quarter of distance learning and also for semi on-campus. Everything is positive in this regard.

Thank you. Next question is from Leandro Bastos from Citi.

Thank you. Thank you, everyone, and good morning, everyone.

Two questions. First, on distance learning, can you comment a bit on what you see in terms of volumetrics for intake for the Q4?

It's always ruling. If I understood correctly, competitive dynamics has improved from September, but if you could talk a bit about what you see in terms of volume environment for intake in distance learning for year-end?

Good point. Second is also distance learning regulatory framework, more specific.

2,500 units, do you have anything regarding adjustments, number of closings that you have in your studies, and you talked about effect of revenue, costs? Do you have any effect on CapEx, anything that you can share in this sense?

Thank you. Thank you, Leandro.

Good questions. On 2,500 units, potential impact, we have different sizes: small, medium, and large.

At the units, small towns with smaller demand, we have to look carefully to the sustainability. Overall, we looked at the revenue.

The impact is minimum. We can have certain units that we have to revisit locations, some places that may be more complex for their sustainability.

Overall impact, if they're not sustainable, they're very small impact that have very little relevance to our results. On CapEx, well, no, because the adaptations are on partnering units or hub, because they go into the transfer line.

We don't do the CapEx directly in this partnering hubs. Those are the two questions.

Have I missed anything? Of volumetrics on intake on distance learning, yes.

Q4, I'll ask Marcel to help me. Okay.

As to volumetrics, add to what was said before, we made a fast migration of all the courses that were being offered in distance learning that were actually banned, and we started the immediate offering for Q4. It's very much in line to what we had last year.

Obviously, we don't have nursing there, but we see Q4 moving sideways year-over-year. This is good news because great part of that is migration to a semi on-campus product that has a slightly higher price.

This is a very positive indicator to us. As Marcel said, we had the impact of 1% of NOR on the offer, and you have Q4 in line.

I cannot offer any of the courses that have been banned, the volume is coming in line. This is good news for the mix, as Marcel said, not only for Q4, next year, keeping this trend, should have a positive mix.

You're migrating courses of modality that are less on-campus, that are cheaper, for courses that have a higher ticket. Very positive.

Thank you for your questions, Leandro. Thank you.

Our next question comes from Lucas Nagano from Morgan Stanley. Your line is open.

Good morning, everyone. Thanks for taking our questions.

We have two questions. First is on bad debt, about 8% this quarter.

You have the effects of one-off selling the portfolio at IDOMED, Q3, 4, excluding that would get for 9.5 of revenue. I'd like to see this recurring level of bad debt.

Should this benefit of conservative view of revenue for Q4 next year, I'd like to better understand the sustainable level. Second question is on IBMEC with strong results, and we know it's an audience that is greater.

If you have opportunity of expanding to other regions, considering the success of the present units? Thank you, Lucas, for the questions.

I'll talk about the effect of bad debt in Q3, and then we're going to talk about the outlook. Let's start with IBMEC.

Thank you for your question. IBMEC is one of our jewels, many times overlooked, and we had a Q3 that was very strong in terms of results in all aspects.

Your question is super interesting because where are the new opportunities? For strategic reasons, we don't talk so much.

We prefer to talk about what we have done rather than talking about outlook. It's an important strategic project for us, especially considering this growth in lifelong.

IBMEC lifelong is important at IBMEC and has greater possibility because it's less restricted to brick-and-mortar campus, considering all the possibility that we have, greater digital presence and allows you to have expansion nationwide. Another lever of expansion are the courses outside the traditional areas of business.

You have courses that are very strong, traditional, and IBMEC, etc. We have grown a lot with a portfolio that is close to the business.

We launched technology courses. We have a high portfolio of IBMEC for lifelong that are very praised in this topic that is very much sought.

We connect this to the business. They are not just technology for the sake of it, technology geared to professionals and business people.

It has been very well-received. We have the law course, very strong in practically all the marketplaces, law more connected to corporate, business, and allowing students to develop several careers, and we study potential expansions.

On this topic, we'd rather not talk about it. It's quite delicate from the competitive standpoint.

We're very happy with IBMEC. We'd rather keep some gemstones to us, and I'll turn over to Alexandre so that we don't open up on our gemstones.

We're very excited about IBMEC. On bad debt, we see in the bad debt very positive results of a more conservative view on revenue.

We're reaping these fruits or benefits, have better quality of revenue when we have less long-term revenue since we have lower penetration of DIS, especially second half. DIS is more long-term.

You have immediate impact on bad debt reduction. This has been happening since early this year.

We have a provision for non-engaged students. This reduces revenue, especially in the quarters of intake.

We have that NOR comparability, the accounting view of revenue suffers, does not impact cash. This influences bad debt.

The complete cycle of intake and of renewal and dropout is also neutral, but you'll see this variability when you compare the NOR slower, especially in intake quarters, and you see better bad debt. Slow in the Q3, this goes stronger in Q4 and very strong first quarter 2026.

We'll see that very favorable in bad debt year-over-year. In this Q3, we had some other specific supports.

Selling the portfolio, we believe it will be recurring. We're only selling 20% of the portfolio, 20% of the student that is inactive.

We had a provision 100%. We did the write-off.

It would be more constant historically, but for one reason or another, our recovery rate is higher than what we had in the market. That was not natural.

We expected this to stabilize, started stabilizing now, and we're going to start making those constant procedures. This base of inactive students is a accounts receivable with write-off, it grew 20% a year.

We have 20% of this portfolio should be a stable process of selling a small share of this inactive portfolio, and should happen throughout the year. It will be recurrent.

It's one-off vision of Q3, but on a year view, it will start happening. It happened normally because this was revenue I recovered over the time, and it will have specific effect when I make the sale.

We see that as a recurring and structuring benefit. When you have isolated view of Q3, it's specific.

All the bad debt cycle is positive, and you should expect positive outlook for 2026, right? It's good to have a CEO that was CFO before that can better explain that.

Looking ahead, we see this outlook of improving bad debt. It was a Q where we had higher reduction than we're going to have on the consolidated of next year specifically due to what we commented.

Selling the portfolio is something that we're going to do recurrently. Since it was concentrated in this quarter, it had an effect on the quarter that was stronger than if we actually make the sale next year.

In addition, it reinforces the point that we had commented, which is, well, we had a more conservative view of revenue, more quality of revenue. First, linked to the provision of non-engaged students; second, due to less addition of DIS by students.

These two factors will fit in our bottom line for our bottom line will see reducing our receivables average time. It will reduce our bad debt next year.

It's to tell you that certainly this is the effect that is expected very much linked to what we had planned in the difference of recognizing our revenue. Year-over-year, we see bad debt very much below compared to this year.

It's good to see humble CFO as his preceding CFO, but he put it quite well on the bad debt. Thank you, Lucas, for your question.

Any other questions? Thank you.

Very clear. I agree.

I agree. The point on humbleness.

The Q&A session is closed. We now like to turn over to Mr.

Rossano Marques to make the company's final remarks. You may proceed, Mr.

Marques. Thank you all very much for taking part.

As you've seen, it's a quarter that makes us very confident regarding the next steps of the company, and we're very strong in all lines, cash generation that is very consistent to what we've been talking about and sustainable, showing again the ability that we have closing this year very reassured regarding the guidance that we gave and the operating results. We're doing very well there, and intake.

Q3 is better than looking back, it's looking ahead. The outlook is very positive.

All of that followed by a very engaged team. You saw the award that made us very proud of best companies to work for of Exame magazine.

See great satisfaction internally, our academic quality improving in all segments: IBMEC, IDOMED, Estácio. This is our business in all modalities, teaching our students, ensure our excellence in academia.

Very happy in all outlooks, and I thank the whole team, super team of Yduqs. They've met some of them, some are not here, but are very happy and proud with the results.

Thank you all very much for taking part of our calls, and we'll be open for questions. Thank you very much.

Videoconference of Yduqs is closed. We thank everyone for their participation and wish you all an excellent day.